Use the concepts from the background readings regarding franchise competition and markets. Use and reference any good quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.
The paper must be 3 pages, double-spaced and typed in Times New Roman (font 12).
The following items will be assessed in particular:
Your ability to understand the differences between perfect and imperfect competition
Some in-text references to the background information material in APA formatting
The essay must address each element. Remember to support all the answers with solid references.
Some firms have a large share of the market while others are just starting. A firm can often create a brand name, which gives them market power. Market power is defined as the ability to raise prices without losing all demand. Since you are analyzing franchise firms, we can conclude that the brand name is somewhat established. Write a 3-4-page paper about the following issues:
1. What type of market do you think Hilton Hotels franchise operates (perfectly competitive, monopoly, monopolistically competitive, oligopoly)? What are the specific characteristics that make it this type of firm? Support your answers with economic thinking.
2. What type of competition does Hilton Hotels face? Who are some of the competitors? (Even if Hilton were a monopoly, think of some substitutes)
3. How do you think Hilton Hotels can increase in market power?